Cable climbs to a two month high of 1.3004 before quickly receding
Price climbed to a high of 1.3004 in a quick pop higher - strongest level since 15 November - before retreating back towards near 1.2980 currently. Much like last week, the 1.3000 handle is proving to be a tough nut to crack for pound buyers as it continues to act more as a psychological barrier more than anything else.
Markets have largely been optimistic about chances a no-deal Brexit as they view it diminishing since the meaningful vote but at this juncture it appears there needs to be more of a kick and a fresh catalyst for the pair to truly find a significant break above the 1.3000 handle.
From the hourly chart, the trade is a simple double-top pattern where risk can be clearly defined and limited. But as with all things Brexit, just be wary of headline risks. As for shorts at this point in time, I would recommend not getting too greedy though. The pound is still looking perky and all it takes is just one algo-triggering headline to send things overboard.
In the bigger picture, price is also encountering some daily resistance from the downwards trendline seen since September:
That will be another key level of focus as we navigate through the trading sessions today.
